Ocean Rig UDW Inc. Announces Closing of Offering of $800 Million of 6.50% Senior Secured Notes Due 2017 by its Wholly Owned Subsidiary

News Release Ocean Rig UDW Inc. (Corporate Head Office) September 24, 2012

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Nicosia, Cyprus – September 20, 2012 – Ocean Rig UDW Inc. (NASDAQ:
ORIG) (the “Company” or
“Ocean Rig”), a global provider of offshore deepwater drilling
services, announced today the closing of
the offering of $800.0 million in aggregate principal amount of
6.50% senior secured notes due 2017
(the “Notes”) by its wholly owned subsidiary, Drill Rigs Holdings
Inc. (the “Issuer”). The Notes,
which were sold in a private offering within the United States to
qualified institutional buyers pursuant
to Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”), and to certain other
persons outside of the United States in reliance on Regulation S
under the Securities Act, were issued
at a price equal to 99.469% of their face value.
The Notes are guaranteed by Ocean Rig and certain of the Issuer’s
existing and future subsidiaries and
the Notes and the related guarantees are secured by certain assets
of, and by a pledge of the stock of,
the Issuer and the subsidiary guarantors.
Ocean Rig will use the net proceeds of this offering to fully
repay all outstanding indebtedness under
its $1.04 billion senior secured credit facility, amounting to
approximately $487.5 million as of June
30, 2012, and for the purposes of financing offshore drilling
rigs, and to pay all fees and expenses
associated therewith.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the Notes and
the related guarantees, nor shall there be any sale of the Notes
and the related guarantees in any
jurisdiction in which such offer, solicitation or sale is
unlawful. Any offer of the Notes and related
guarantees will be made only by means of a private offering
memorandum.
The Notes and the related guarantees have not been, and will not
be, registered under the Securities Act
or the securities laws of any other jurisdiction and may not be
offered or sold in the United States
absent registration or an applicable exemption from registration requirements
under the Securities Act.</DIV></BODY></HTML>